FTC settlement targets RentGrow tenant-screening accuracy—what renters can do

The FTC announced on July 9, 2026 that tenant-screening consumer-reporting company RentGrow will be required to pay $2.25 million to settle allegations that it violated the Fair Credit Reporting Act (FCRA) and the FTC Act.

The allegations focus on report-accuracy problems tied to duplicate or overstated records and on how the company handled consumer disputes. For renters, the practical takeaway is that the FCRA creates a dispute pathway when information is wrong—and screening errors can affect whether housing decisions move forward. For landlords and property managers, the case is a reminder that screening accuracy and dispute workflows are part of legal compliance, not just “data quality.”

What the FTC says RentGrow did (and why it matters)

According to the FTC’s complaint allegations, RentGrow violated the FCRA by failing to use reasonable procedures to ensure the maximum possible accuracy of information in its tenant screening reports.

The FTC alleges the company’s procedures allowed duplicate case records and multiple entries for the same criminal or eviction action on tenant screening reports, giving applicants the false impression that they had more convictions or had been sued for eviction more times than they actually had. The FTC also alleges the company displayed data in a way that made some proceedings appear multiple times, even when the vendor provided the information accurately.

The FTC also alleges RentGrow made it harder for consumers to dispute inaccurate information by failing to disclose all information and sources of data included in its consumer reports when consumers requested that information. The FTC’s example says the complaint alleged RentGrow did not disclose that Lexis-Nexis Accurint was a source of additional historical address information and middle names used to match consumers to criminal and eviction records.

Finally, the FTC alleges RentGrow did not follow required dispute-handling steps. The complaint allegations say RentGrow labeled some disputes as “invalid” and did not take further action, including disputes involving duplicate records and disputes about changes to records that occurred after a tenant screening report was prepared. The FTC also alleges misleading conduct about dispute outcomes, including that RentGrow told some consumers the property manager was notified when—according to the allegations—RentGrow told property owners there was no change.

The settlement in plain English: payment and compliance requirements

Under a proposed order filed by the DOJ, RentGrow will pay a $2.25 million monetary penalty. The FTC also says the proposed order would prohibit RentGrow from failing to maintain reasonable procedures to ensure the maximum possible accuracy of information in its consumer reports—including procedures to prevent multiple records for the same criminal or eviction proceedings—and from failing to comply with other FCRA requirements.

In addition, the FTC says RentGrow would be prohibited from misrepresenting that it provides updated screening reports to landlords and property managers after a consumer successfully disputes information.

What the FCRA requires for tenant screening disputes

When a landlord uses a tenant background check and makes a negative decision, the FTC says the landlord must provide an “adverse action” notice. That notice must include the name, address, and phone number of the tenant background check company, and it must explain your rights to dispute inaccurate information—and to request a free copy of the report if you ask within 60 days.

The FTC also says the background check company must give you a free copy of the report if you request it within that 60-day window. If you find errors, you can dispute them directly with the background check company and include supporting documentation.

Under the FTC’s guidance, tenant background check companies must investigate your dispute within 30 days and provide the results in writing. If a correction is made, you can provide an updated report to your landlord—or ask the background check company to send the updated report to the landlord.

Action steps for renters (including when records seem duplicated or overstated)

• Save the adverse action notice: keep the notice and the contact information for the tenant screening company.
• Request your report within the 60-day window: use the adverse action notice as your starting point.
• Dispute with documents: gather paperwork showing the correct outcomes, dates, or dispositions, and submit copies with your dispute.
• Track the 30-day investigation: ask for written results and keep records of every submission.
• Make sure your landlord gets updates: if corrected information replaces the disputed content, ensure the updated report is what your decision is based on.

What landlords and property managers should watch next

The FTC’s allegations point to two workflow risks: relying on reports that may contain duplicate or overstated records, and not being prepared for dispute-driven corrections. Landlords and property managers should plan for receiving updated information after a dispute—and confirm that decision-making uses the corrected screening results.

Bottom line: this settlement underscores that tenant screening isn’t just “background checking.” It’s tied to legally required report accuracy and a federally protected dispute pathway—so renters should document errors and dispute promptly, and landlords should be ready to handle corrections when they come in.

Sources

• Federal Trade Commission press release (RentGrow $2.25 million settlement) — July 9, 2026
• FTC consumer guidance: “Tenant Background Checks and Your Rights”

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